Re: where does a-rod play next season?
John (Milwaukee): If there is an 80% chance of A-Rod moving, the next question, of course, is to where? I would think only the Red Sox would not think twice of going to 25 million per. Or am I wrong?
Nate Silver: Oh, I disagree. There's a ton of money pouring into baseball right now. Most of it is in the form of fixed subsidies, e.g. from MLBAM and National TV, rather than revenues that are marginally impacted by team quality, but that won't stop people from looking at their P&Ls and saying "Hey, we're in the black! Let's spend!". You have to understand that there are only 30 MLB owners, and most of them are not necessarily in profit-maximizing mode. There are a number of rich dudes who treat their teams as toys, and they start to worry when their teams are losing money, but so long as they can live out their childhood dreams and turn any sort of profit at all, that money is going into player personnel.
And with A-Rod in particular, the industry seems to have collectively resigned himself to allowing him to break the $30 million barrier. The only way that A-Rod doesn't get a contract averaging at least $28.5 million per annum is if his name turns up in the Mitchell Commission report.
Hmm.
|